The Polkadot price is holding steady as investors embrace alternative currencies and as its ecosystem grows. DOT is trading at $46.8, which is slightly below the intraday high of $49.76. According to CoinMarketCap, the currency has a market cap of more than $44 billion and is the eighth-most valuable currency in the world.
For starters, Polkadot is a leading blockchain company that works in a similar way to Ethereum. It allows decentralized app developers to build applications like Decentralized Finance (DeFi) and Non-Fungible Tokens (NFT). Like Cardano, the platform’s builder was also a co-founder of Ethereum. DOT is the native currency in the ecosystem.
Polkadot price has surged in the past few years as developers have embraced the network because of its quality, speed, and lower costs because of its proof-of-stake technology. Today, hundreds of projects have been built on Polkadot’s ecosystem. The biggest ones are Polkadot itself, Chainlink, Kusama, Ontology, and Ox, among others. 5 of these coins have a market cap of more than $1 billion.
The growth of its network has been a good thing for Polkadot as its price has grown by more than 1,500% in the past year. This year alone, it has risen by more than 500%. Also, we can’t rule out the fact that low-interest rates and the fear of missing out (FOMO) has contributed to this success.
Polkadot price has also benefited from the tweets by Elon Musk, who criticized Bitcoin for its energy consumption. Like all proof-of-stake products, Polkadot does not rely on computational mining, which is a major electricity consumer.
Finally, the DOT price is rising after dTrade landed a $6.4 million funding. dTrade is a DeFi project built on Polkadot’s network. This means that more DeFi builders are embracing the network for their projects.
Polkadot price prediction
The daily chart shows something unique about the Dot price. While the currency has surged in the past few months, it has moved in a sideways direction in the past few weeks. This is because the currency has faced a lot of resistance at around $45. The currency has also formed a channel whose support is at $28. In my view, this channel resembles a bullish flag pattern, which is usually a positive sign. The pair is also above the 25-day and 50-day moving averages.
Therefore, in the near term, we can’t rule out a situation where the currency breaks out and rallies above $50. This could happen this weekend or in the coming days as worries of inflation fade.